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ABC Corporation paid $2.15 dividend last year. The dividend is expected to grow at a rate of 3.5% for the coming 3 years and
ABC Corporation paid $2.15 dividend last year. The dividend is expected to grow at a rate of 3.5% for the coming 3 years and 3% thereafter and forever. The required rate of return is 7.5%. Required: A-Calculate ABC stock price today. B-Would you like to buy ABC stock if the market price is BD 40, and why?
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To calculate the stock price of ABC Corporation today we can use the dividend discount model DDM for...
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
